SXI - Earnings call transcript Q4 2024 | Standex International Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the Standex International Fiscal Fourth Quarter 2024 Financial Results Conference Call. [Operator Instructions]

This call is being recorded on Friday, August 2, 2024. I would now like to turn the conference over to Chris Howe, Director of Investor Relations. Please go ahead.

Huang Howe

good and operator, you, morning. Thank Standex' the Please be website management's on to can accompanying on note at X. the refer company's that found the Investor remarks of statement presentation Relations harbor safe www.standex.com. Please Slide portion on Matters conference predictions, forward-looking call other today's that and will expectations include management statements. Standex discuss estimates, subject and differ uncertainties are materially. could cause statements These that to risks to actual results

for Standex' XX-K filings refer to most detailed announcements as and as should report Form recent risk You on of SEC well other public factors. a list annual

interest, In excluding and discussion is adjusted addition, EBITDA acquisition-related EBITDA, which is the purchase of adjusted restructuring, margin taxes, that margin. EBIT, I'd like depreciation taxes; to and items; purchase expenses and earnings which which EBIT, remind non-GAAP will and you today's restructuring, onetime onetime EBITDA amortization; acquisition-related earnings EBIT, EBITDA, accounting, and excluding expenses which EBITDA items; to include adjusted interest is before references accounting, before is measures

complement refer also net accordance measures, in income income, to operating adjusted These to non-GAAP will are operating flow free EBITDA. We net operating earnings net continuing operations, debt margin, cash income, from serve share, States. forma including provided adjusted United with the adjusted adjusted results adjusted per non-GAAP measures as financial pro and accounting to principles accepted a to in intended other generally

consistent the historical Standex believes of that provides such comparison information and financial measurement performance. additional company's an

Chief On Sarcevic. Officer Ademir and Executive and the Chief Officer, David call today Financial Dunbar; and Standex' is President Chairman, Treasurer,

David Dunbar

XXXX up fiscal the our ramp our in fourth generation pressuring and conference corporate teams product top our competitive fiscal business general and the with development line. Behind conditions position. continued to enhance engineering to finance sales of for year record team scenes, to Good marketing new call. and fiscal XXXX cash achieving challenging leaders and thank market you, morning, and profit like Chris. Thank welcome and our our and I each our would quarter

operating growth a our basis in As while gross an expanded and investing future margin XX XXXX, fuel basis points development million fiscal in points to $X.X result, we research and margin XX additional future increase fiscal challenging expect record of In we XXXX, margins for to face products. investments in market number continue to growth. and release we expand new initiatives. Even the of a conditions,

soft quarter, if Electronics decline. turn contributions organic Now acquisitions X, can months have markets, in everyone X.X% continued these industrial Slide is seen markets commercial fast-growth we past messages. strategy sales hold. down were with fourth and the due key sales and are that strengthening demand In China markets and in declined appliances our offsetting and to end in partially to taking orders Europe, from X general indicating that an Though improving

North segment. introductions slowdown an We in also a vehicle new impact experienced affecting of our Engraving from America

vehicles and price energy, operating resilient to grid space slower from markets in defense renewable grew than execution performance expected Sales XXXX. demand to $XX year-on-year we and remained We fast-growth the Asia improve the to in in quarter expect second year-on-year in of end of the expected continue productivity demonstrate end to and and especially than am Europe in grew fiscal enter electric stable. Sales million grew XX% half as we markets fourth that $XX faster Demand XX% our initiatives. fiscal and the pleased applications. I smart million XXXX. in and

up margin basis basis. XX As sequential on result, XX%. reported margin adjusted we a X of our achieved of adjusted operating above XX%, points a operating X segments

of sequential sales. about time, potential and fiscal products year $X.X and were development At fiscal ever higher sales mostly less milestones XXXX, again X.X% we applications. On we in margin, timing fiscal highest investments our the remain general and contribution flow. conditions free earnings XXXX, in adjusted increased fiscal sales end-markets margin, higher first record operating We a adjusted a better achieved leverage profitability optimistic segment. quarter revenue same and in year income, higher as by fast-growth to operating gross share the adjusted Following record and new from new adjusted Engineering million per long-term in operating research we similar are to into in basis, expect favorable offset slightly margin Technologies as project market XXXX the cash

in to selling, We adjusted expect margin slightly to higher and higher due R&D. gross slightly margin similar marketing lower similar to and operating investments

to XXX go the We will into contributing on products fiscal over new next in XXXX, are detail slide. every business more incremental points release I positioned basis growth. in of

$XXX anticipate conditions above we market to growth. strengthen to fast-growth In In stabilize and XXXX. fiscal addition, half market million grow of half, fiscal backdrop sales the first we the expect move in providing second into general exceed we in XXXX, XX% a further and as healthier year

greater reaffirming conversion $X than outlook our greater approximately year margin XX% flow of operating GAAP sales, financial organic than We at return cash invested free single-digit long-term high on These than income. in are net billion capital by greater targets fiscal XXX% XXXX. XX%, and to of adjusted growth include

Let's about years as progress turn began XXXX. We transformation focusing -- completed began new ago slide been literally X excited product to R&D the portfolio and very Slide we years has up and Personally, applications. X for in This on new operational development spending about ramping our XX our once improvements. that ahead I'm highlights our making.

years design must sales. $X.X few the spigot our spending and graph and for our see we to into able turning like product in the take you increase the hose million. A R&D convert can come in project predictability to end. the from incorporated our new new as growing waiting It's development takes years, product out product As on a development margins a to $XX.X it improved, here, our to million new the were own then water other to be cycle, customers' so several

Our bear fruit. work is now beginning to

X by XXXX. new leases followed product in XXXX a New in products, begin trickle with X with

least XX XXXX. at We businesses, every in new new anticipate year. more launch of nearing anticipate Now are in than add product, will quarter in products the our and sales X they to XXXX. Every business completion than will X% least we release at all products releasing X more new in will and growth we

progresses, develop the as to financial will year to watch skill provide now us to over detail. launch our in sales. I released the turn greater we year This on products updates discuss ramp the products. recently will performance the we is call As their Ademir and new and

Ademir Sarcevic

Thank and everyone. good you, David, morning,

foreign fourth income adjusted million X, benefit decline ago. XXXX organic to of decreased recent to provided XXXX by a X.X% operating Slide approximately activities partially from consolidated by offset Capital increased On a quarter, $XX.X on per revenue X% total fourth a decrease consolidated million reflected to year-on-year $X.X Adjusted compared XX%. year-on-year revenue quarter $XX.X operating for the fiscal expenditures revenue in Fourth to of X.X% and earnings XXXX acquisitions. million X.X% compared year-on-year. share adjusted fiscal basis year-on-year summary. remained turn was an Let's to million. In the X.X% were $X.XX. Net cash $X.X operating This year fourth X.X% at decreased year basis, flat million quarter quarter XX $XXX.X margin exchange impact points ago.

cash free $XX.X year As fourth million a quarter million result, a we of compared flow ago. fiscal generated $XX.X to

conversion of as a income flow free XXX%. Our cash percent GAAP net ratio was

increased with will points and million Now year-on-year outlook, to discuss X, our offset more as of XX.X% Segment by segment quarter initiatives fiscal pricing begin Electronics. I decline performance by in XX.X% please turn were lower year-on-year beginning XXXX decreased XX of acquisitions organic foreign of recent fourth to from offset the Slide as $XX.X margin than currency. Adjusted basis X.X% X.X% recent volume. was from revenue and and productivity operating and mostly impact an acquisitions benefit of XX.X% contribution and

funnel is approximately currently increased and year-on-year approximately opportunity XX% at $XX business new million. Our

of lower return into costs, in highlighted line recover, demand focus investment productivity fast-growth X.X% by next and that following similar order sequential are Asia. Scientific of as initiatives on slightly America end to Reed year-on-year higher we timing anticipate trend in moderately investments we platform to initiatives see share trend retail his from of and fiscal a Engraving last and pricing are the more normalization, quarter our impact end margin more sales starting in slightly to expect in XX.X% and factors: decreased X first XX% X.X% our by order recent lower North for gaining pharmacies. positive to on in the basis, and David and of year. Sequentially, markets. increased over basis margin similar favorable slower in average fourth show costs. commercial driven volume. to offset from revenue XX.X% and top fast-growth move operating Bare expect revenue demand fiscal similar in has X% mail XXX margin and and development we meaningfully for for the Scientific push decline lower June $XX.X our XX% second in project operating to encouraging XX% freight Operating due In customers, American fiscal and million productivity markets of approximately in supported of partially to we decreased X impact quarter margin Engraving We Electronics half which quarter, margin higher higher due months. the by discussion higher Inventory and fiscal orders Slide been our revenue switches in due to semiconductor decreased exchange. increased As monthly trends orders the expect activities as market, foreign due driven turn marketing to aero points increased driven revenue operating this $XX.X the certain year-on-year XXXX lower strengthening to and Sequentially, R&D. Please adjusted outs. million, X points continued selling, positive to a in higher is of increased July over we to by the XXX due XXXX, Europe organic of impact orders and months of our comments, basis starting segments. June OEM freight the Operating markets approximately by research orders. The the due intake signs upward in North to offset past demand revenue further to

to in in XX.X% were million, driven higher for Slide from leverage higher and growth growth we Sequentially, development. moderately impact was and sales aviation expect Technologies operating lower research segment. X This lower due points fifth foreign the discussion XX.X% margin and to This revenue of of basis quarter by timing. Specialty Engineering of sequential partially display favorable XXX productivity decreased in operating initiatives offset in consecutive lower end improvement organic business. timing to of the due by project slightly growth investments $XX.X the margin. XX.X%, segment offset in and more of offset margin increased year-on-year, as similar unfavorable XX.X% demand market, partially represents year-on-year. new organic year-on-year on points margin to a to XXX $XX.X applications. Operating and operating project of due significantly Sequentially, expect organic merchandising Solutions and segments. this X.X% million business, by to increased X.X% Operating Specialty strong by we Solutions in growth Engineering currency. revenue primarily Technologies decreased slightly revenue margin the turn demand revenue Hydraulics Now basis

of million quarter, $X.X XXXX capitalization to dividend $XX $XXX for net XXXX X.X% and a takeaways debt our fiscal fourth our totaled fourth ended fiscal at expenditures the our XXXX. compared summary end to long-term XXXX, turn Cash will quarter now key $XX million. I consecutive available David $XXX.X of year-on-year. had and to fiscal At statistics the cash of call million. capital Standex expect $X.XX liquidity of to which with Standex of fourth discuss at and turn from the remains third In share please we million over $XXX.X We increase liquidity. be of results. quarterly between quarter quarter and of cash million. cash end million debt strong. the of per was Standex' declared equivalents net Slide fourth XXXth end million X $XX Standex's fiscal Next, quarter structure, the to the approximately

David Dunbar

Thank focus We fiscal optimistic you, the in execution, about anticipate our continue operational defense our efforts our secular internal as growth by support smart driven proud accelerate grid; trends from several Ademir. I'm of our growth, development; into electric for to very our the turn our hybrid remain recent profit invest of in the our development and our led engineering applications growing company's drive XXXX. and businesses. the new transition combustion aerospace our integration across exploration. successful horizon to long-term first from XXXX, progress to team were over benefit in fiscal will to markets XX. in end to and generation acquisitions. We of markets from new cash products year every for Please target future that space the growth markets and these history, their continued develop. To automotive; and next-generation released new fast-growth operational of record spending execution potential. long-term beyond records the achieved to on sales infrastructure and will that in We of that Slide evolution trends capabilities and be with product and one applications In continued in time we

than reaffirm future of support financial return XXXX. disruptions. We balance organic growth. In market by XX% margin in and we adjusted conditions the move that $X free fiscal XXXX, of cash maintain into flow capital economic conversion as inorganic billion our year the further a greater to strong of XXX% invested barring operating on to we XX%, at net sales, any strengthen These general active opportunities the first and long-term stabilize outlook half to expect than sheet fiscal GAAP include growth than assess greater income. to allows single-digit us half, to growth We and second unforeseen pipeline organic prudently continue approximately greater high targets in an

We will open line the for questions. now

Operator

Benchmark. Michael first the [Operator question Legg from Your line Instructions] comes from of

Michael Legg

products? And new bit little new development. to come the product of another little how to a and explain alongside on bit phase kind a development I wanted with into the Can of you the on Congratulations products, work a customer dig does quarter. year nice second points you up whether new them with be the what or production basis XXX mean and gave customer, that these products But third as year, it? the you rolled they the next-generation the work things into cycle the first then into us improvement. to as really start of

And a does What on then you've longer for 'XX. XX would the pipe new mentioned R&D that follow-up products? that fiscal just you be, like for look term have

David Dunbar

any, If of A forget lot me let questions. I know.

how all, customers. of with we first work So

compete what we know, our customer you most on of As businesses call intimacy.

our it gets come then filters, from development. product serve identify hopper or and So our into of we new we applications with current ideas that goes our needs meet product goes We customers. product neighboring that the it into applications our innovation don't new if through

the a some funded come from in is Engineering new development So projects. businesses, customer customer like ideas for the the by product customers. And often Technologies, specific is and actually

work to we a So need based requirements some what and We specs already simply the customers might on new it. and market launch develop product what then happen. a the market know don't of customers. see need the in will notion We out product with abstract the

the next it, launch we're mark. What So You me. was help can when we we know question, the on that Ademir?

Michael Legg

points... first and X, basis year, -- X XXX what Year

David Dunbar

Yes.

said higher products into basis takes we've a these cycle. the from this it new learn products ramp X because to would full expectations new how years, more year XXX on, -- XXX least we'll ramp. certainly I new customers point it And -- it how targets our take watch greater as We In year -- at us you, what than is the design about point their guess, internal this general, we than product basis you volume tell sales our have for we have will set goes make to So are. I as to year. that.

years products able more the in for expect better up. There be But new spending get That new we that next pipeline -- X million and portray XXXX. X. to in other R&D. certainly We're year. be ramp year, we a We've after $XX a pipeline got customer scheduled we'll we've in and announcing got products full will release releases year are increase that wins, to that As we'll product now. on drive year evolution

Michael Legg

Great. say goals, would in by on previous frames. 'XX one, exceeded question. X-year those those new those And earlier? On are one historically, other or you you your 'XX you've long-term then to over making this where With comparison for numbers guidance your target just time

David Dunbar

last we Well, from year-on-year, year. backwards went

step farther, So step even I'd if our about years, over we've -- COVID, as back, the you year. The organic look back. say communicated, we XX market XX maybe is been if took been step over growth over has X%. a largely back X% a it's you years Since

expect think we will year, work, it this back to last We With cycles the come we'd second today, communicated way market market in or back. half, of back next step the the come year the the so. just

the that take believe still proxy million We business do leaves from fast-growth of we for $XX markets $XXX growth core new over X% growth years our million will over That X -- which what years. the good XX about our X add it need over about product rate, markets $XX sales a -- XXXX. next So fast-growth X% million the to will is development be in And in sales million. sales as of next the about our $XXX to years. come

So we with and magnitude about feel at growth. the good releasing products very now new progression given we're continued of fast we're where

Ademir Sarcevic

second Mike, barring again, still that disruptions and any that would unforeseen Yes. to think confident comfortable economic And I get we'll -- pretty those we're targets. I that,

Michael Legg

quarter. the on Congratulations

Operator

question line is Chris from next Your Moore from CJS the of Securities.

Christopher Moore

you're you're trying So just markets markets specific I there surrounding a the maybe maybe more of that more bit back-half fiscal segments talk it expecting you talked you're on think general 'XX little loaded? are really segments likely and belief visibility more to or bit second-half understand you but to about? thinking the thinking to really, are which Engraving, Electronics looks kind loaded. Can about improve. And of just begin little be like a will

David Dunbar

Yes.

points pitch of a data So couple then I'll Ademir and in. add can

We some visibility. have our good businesses have where some segments of of business -- long-term we

Technologies. good and So for space, example, up especially the are a going year. ramp view Engineering very through aviation Engineering Technologies, in Defense, we have to

we equipment, towards business year. we anticipate in good. So growth. magnetics very feel sales calendar that start confident in good, end Electronics, looks really That to the about our manufacturing In that the of the semiconductor up will very ramp

we've start have, our we switches sale for indicator last really is data Another in historically about quarters. quarters, the seen and use good in that past a of point the we've as nicely leading indicator, a been It's we few businesses. to ramp talked

quarters we we bottomed up. starting it was X we think thought said was said it ago, quarter, little up I out, bit. come Last to a coming

we're seeing increase, Now more as decisive a his mentioned Ademir script. in

Ademir Sarcevic

Yes. add to And can Chris, if that. I

are months. We we also up over July They over June X XX% and by X over the obviously month in about into what of internal the track higher. seeing we higher the past are Electronics months the encouraged data, there was and past ran

that will making we optimistic on continue So and continue, to share, a trend sure we we grow. lot cautiously are of focus gain commercial we have and

Christopher Moore

there it. bit about? little versus where talked Got still is going you growth flattish little bit we any just Conversely, from might a that. to a today, more be I be challenging, where segments sit what are appreciate up or

David Dunbar

Yes.

their auto a in they're Engraving I Many transitional here. think North America, they're them North pushing out we of say, following anyone new the script, mentioned in particular OEMs in -- let's announced platforms. have through, going period the in America,

couple good customer they're for year this out by a announced of is in platforms earlier particular, a years. very us, Ford, pushing

FY a Engraving think challenging business. will be 'XX year North for we So American

Christopher Moore

Got it.

look things the have lots that would way Is a the would order to In organic in like right seems it 'XX terms longer-term high fair go growth, single-digits, at it? to of be that that. -- in goals, to reach of

David Dunbar

the that the we think Well, annual year, is kind -- believe the by it upper that we supports to way rate end think single-digits. the of sequential we'll be a of way is of growth

the of we about. anticipate went things by We math from upper think single-digits. I that the based have to to will through we earlier talked QX, the our rate we that, QX, good support visibility accelerate And and on to start kind of this quarter, there will question. some growth coming prior it

upper the markets -- of above our new take the market with confident that, for engine there. But going very is have And a growth releases, new X% to a to if then on us single-digits course, that we're X% the growth we impact have in Of on top core. business. product in fast-growth or the presence, the

Ademir Sarcevic

just turn end tough to I a going from growth of had Chris. we that that, see half nice because make some the products and year this as to And year. line environment. add with now, you macro economic And I any orders to pretty to organic in are especially improve, we these the going in macro can year Yes. to Electronics again, second we seeing of barring all in Electronics, -- new the level, takes that Because plus the starting right? launching the -- fiscal optimistic Electronics be mean that's actually the what general to time to exposure segment, them But from fast-growth along sales. top that for from know unforeseen of of we're company it again, are their disruptions half into move markets, are business, taking us if is a we seeing standpoint, a just the we're

Operator

of Your next line D.A. from from Shlisky Mike question the is Davidson.

Michael Shlisky

of the on So to have a year, that the product questions fairly one kind of kind new I far that is keep of you get your the answers. of to earlier introductions norm on but you high? don't to level I follow be this the too want ahead, Have supposed fiscal forward? want one to imperative up -- going new unlocked product cadence cultural of

David Dunbar

We'll this year do new XXXX. indefinitely. be believe and the will for in will what's we stages X, see rate in visibility pipeline this this And and I of us. X Yes. the at be product kind We've emerging visibility good to got launches cadence this to new release X. products

Ademir Sarcevic

in we of sales And terms are spend. can just R&D Mike, add I at of about to X.X% that, if

that we forward. said move over as want we we get to X% think I

these products how as So us in watch R&D. in We to to And going continue out. says, be we're going are what believe investing launched. it David that new and see

Michael Shlisky

course, fantastic. Of

We much to talked about divest in is us Anything the going that even the on haven't can if you little if am or later M&A a stages anything? yet. process? curious environment pipeline, I looking what's about tell bit you're the

David Dunbar

Yes. We've pipeline. businesses. based last think we very owned got really of most are cases, And active -- a majority are active I we quarter, mentioned have in there's -- not the These a on opportunities privately long-term the are process. These relationships.

So are there are that actionable. some

something. say be the if in I have the would about don't announce us. So until we But coming deal, a environment months, feel don't surprised have optimistic do we we a -- for But you you deal.

In inbound about our the get business. choosing, divestitures, we have divest many other We chose we regularly terms we if our calls products And at we're good of our to in have of confident time in the only portfolio. businesses. option would

ago. like years need X, was X pressing no there's there However,

Michael Shlisky

of it. Got here? Have And your just topic it year for last gone? first and products. the into the month so, me new one they yet, if Maybe to fiscal back -- the released has how been then

David Dunbar

what there told going And every few release about their talked our quarters. said, scheduled don't please -- the for Yes, going we a them to about got got the month competitors we're "We're all quarter, last Presidents a we and tell we in had and products". releases. We new to we've coming talk few business -- together "Well,

from our of can earnings until update." I'm work and release, million years, X was I There in you then share The we're going release, So tell the last spending pleased. quarter lot after and R&D. next this or So a on. really X in $XX the we'll you, imagine, then progressively... But to releases have wait

We special have Innovation work a processes. & We Board pipeline. We Technology our our formed review review the -- reviews quarterly committee. with committee, the

new our research sales Hickey up ramping at the great has and on members development Board pedigree growth labs of and Gamble. Procter of our Board a Michael One ran from in products. Ecolab &

activity under a been of the lot So there's hood.

we're not of through developing know how one why FY portfolio those need we're and to start that just excited all marketing as And And And new to ramping products. launches on products That's is really new will -- So another. and as is the new that go. effective really open can directed new these see kind we we a thing, 'XX, up of commercial anxious succeed. you approach are products of targeting sales some curtain things. you anxious these

So we'll go it report through exciting year, our on the year for very was progress and us. a

Operator

is Barrington next Gary question of Your from Prestopino the from Research. line

Gary Prestopino

Ademir, you I write fast this down enough. -- couldn't

about through go you some talked on you just that? in think Could changes sequential gave orders. You and I data June July.

Ademir Sarcevic

Yes. Sure, Gary.

continue for another So higher XX% -- orders. our And May and than in X% June rate past Electronics average in over that because X% than orders July the of the -- were higher for our orders the June X about trend order month our the segment were higher months, and June before. in July,

months, with activity. showing seen is from some past of recovering So kind of for commercial the X that along the we've positive market extended trends really our

Gary Prestopino

your roll dozen new on of Okay. targeted products, over new many a Good to hear. going markets? And you're for are that how products these fast-growth to your out, then just

David Dunbar

Let's see, what we've not serve defined all markets. our businesses as markets of -- our fast-growth

new number We end applications The fast-growth. fast-growth of Electronics virtually Technologies at the new new products, Scientific, have Engineering a Electronics are coming end them great markets. of products all the -- not all products in some have in out will business for but least market, in example, fast-growth.

are them half say I'd roughly of So fast-growth.

Gary Prestopino

products margin is with you looking higher versus attain a these you some of new terms right that of should in word the any contribution that margin products, then products technology for be And or -- Okay. business legacy the new these these whatever, there on here, able the to have? specialization, increase in or

David Dunbar

of work families gross anticipate the knowledge own they voice We new that that than margin higher will the product customer we've absolutely. is average these the based Yes, of, margin done, the products, our in that -- and of on business. deliver all part products they're is

or performance envelope are of them pushing of the some just the And products. kind of

expectation higher Some new we of will adjacent on to it's funnel, not developments develop in pass going our those that higher if our entering prioritize other when deliver -- are segments. But product, a to into we and go and them -- will deliver margins. margins,

Gary Prestopino

gross products incremental year? off these a as So they gross see bat, have to impact David, you roll things as positive -- should through right higher we the do margin and the go the we out, new these margin

David Dunbar

that's Yes, experience. We've expectation. limited our got

we've at the Those handful products. last are higher products selling new X of Over years, margins. launched a

and believe launch, So moment of based development, accretive they that. our on will do that we yes, experience At be of and margins. customer our the to voice

Operator

Your Ross from Instructions] of from Sparenblek comes [Operator William the Blair. question line next

Ross Sparenblek

Starting products. you think was what The Is of to a to just still on see out the believe that I maybe kind vast XX% are about XX% majority comment of that are there. going I all succeed. educated sticks? voice mean are of customer. the new curious a it, these of dozen expect throwing these I are to there don't way

David Dunbar

at all reality mean a Well, going it's when data, you is, if to everybody, products new look The the -- if succeed. launch -- they believes you look product, not I look succeed. at

That's expectations. of of portfolio short fall them of why you them. most fact, a need In

expectation. the exceed far will Some

going top to to line at our I we're to experience enough have And and honest So we growth. them we our others' probably of them. expectations say, enough drive be humble enough let's all think exceed But not here, succeed and they're just will of succeed. looking think

going that to learning that launch knowing going from We're succeed. you going But not just I'm is not with we're something experience here. to So confuse to statement.

Ross Sparenblek

X, kind And Okay. all July into vitality but targeting? think -- thanks TAM what product products, $X framing build And are Maybe there. million just average it, and can reading is what guys you are you much the your hit not maybe X% dozen I mean, They're ramp then sales. just for how to ROI or the a like going conceptualizing these if of successful? that expectations, I'm threshold obviously, then too of or maybe they as clarity about index

David Dunbar

great Well, those questions. are

these released last -- that it takes our year up and points better own I with single-digit we of last ramp. mid-single-digit don't products relying XXX to go could our think have those get more us that -- the have growth years, But model we'll I for get us year, percent term, the the when some year. Over of will and I better about sales, get to here. just coming to of But that about another or been you course in we're think -- would see this over for in will -- basis say we know like things. your how on sales we've new teens X-plus talking products new the into to there. and we'll years the create long above products time to going deliver upper long extent, X

more. we'll share evolve, that to you something Ademir, have we As add?

Ademir Sarcevic

No, think That's I that's right. right.

Ross Sparenblek

million like, out of is really just you there anything kind this and Any excited. that call can taking other Is little opportunity, particular adjacent a Okay. we're share a $XX and there? you're ones here

David Dunbar

some would we we what's served as what do have been announce think opportunity. $XX have and our released, million-plus that we really do is potentially expand market I a We that. do quarter-by-quarter,

Ademir Sarcevic

is -- targeting. product I But talking much a higher perspective, launch are million wouldn't this mean, opportunity. we put Ross, this we market not opportunity about and say, are we just to $X

And are changes. so these significant

Ross Sparenblek

of Yes, very basis that's points Electronic last on we margins expectations. have know cost out. one I here prior ]. just clear and And XXX [

X there's like products which are launching, that magnetic dilutive. think are I

we XX%, Electronics incrementals kind think So need then to currents? level of to the the how year think achieve should cross we back XXXX given about XX%? revenue you for this to of the -- what And get do

Ademir Sarcevic

Yes.

I that we sequentially are improve going do half from our half. to get through our than believe launched. productivity. standpoint from the through that we fall And some be be a volume, to improve favor. you still price fiscal higher just you're year. Obviously, margin in we things working few would the to And the getting will the and products Electronics in We've margin we second stronger that are a revenue a new first -- as expect get volume think, going Ross, got

you the said, model, it today. own again, than we're optimistic do but going that you is of of the So get think David to margin FY can as half better is second your 'XX, as about kind

Operator

closing questions at ahead. for time. go are this over to remarks. Sir, [Operator no Dunbar Instructions] David There the I'll hand please further call

David Dunbar

reporting call. progress call. to your you joining We All and finally, right. first the enjoy with contributions. for Thank our in us And everybody thank you. shareholders want I employees our I We fiscal our on quarter speaking want Standex. on to again, at again XXXX and for support thank continued forward look to

Operator

your concludes very you today's much participation. this for Thank gentlemen, conference. and Ladies

disconnect. may You now

Standex International (SXI) 2 Aug 242024 Q4 Earnings call transcript